MEDIA CONTACT:
Keith Ward
Commissioner of Housing and Property, General Manager of Peel Living
Region of Peel
905-453-1300, Ext. 2518

LOW VACANCY RATES A CONCERN IN PEEL

(Brampton) - Regional Council endorsed a report today from
the Housing and Property Department urging all levels of government to
work together to help municipalities and the private sector build affordable
rental housing.

Low vacancy rates, significant rent increases and rising house prices
were among the trends noted in a report released by the Canada Mortgage
and Housing Corporation (CMHC). These trends contribute to the increasing
numbers of people seeking affordable housing and to homelessness both
in Peel and in what is being defined as the Toronto Census Metropolitan
Area.

"The tightening of the rental market in Peel and Toronto CMA concerns
us," said Keith Ward, Commissioner of Housing and Property for the
Region of Peel, and General Manager of Peel Living, the Region's non-profit
housing corporation. "We need governments at the municipal, provincial
and federal levels to work together, because without new affordable housing
stock, we will see worsening impacts on residents most vulnerable to housing
market conditions."

CMHC figures indicate Peel's vacancy rate to be at its lowest level since
October 1988. A vacancy rate of 1 per cent means that for every 1,000
private apartment units, 10 units were vacant and available for immediate
rent.

Rates in Peel decreased from .8 per cent in 1999 to .6 per cent in 2000.
The City of Mississauga dropped to .5 per cent in 2000 from .8 per cent
in 1999. The City of Brampton remained unchanged at .7 per cent between
1999 and 2000.

Trends in the vacancy rate for the Town of Caledon are difficult to assess
because of the small number of surveyed rental units present, according
to the CMHC report.

"Individuals most vulnerable to the housing market conditions include
low-income lone-parents, low-income singles, seniors, those with psychiatric
or physical disabilities, and those who are employed yet rely on shelters
as an alternative to affordable housing," Ward said.

Other factors contributing to the declining affordable housing stock
are:

The 1997 economic boom created jobs and, with them, an increased
housing demand in the Toronto CMA, including an increased demand for
affordable housing.

Tighter rent controls introduced in the Residential Rental Control
Act in 1992 provided more discouragement for the private sector to build
rental housing.

The Tenant Protection Act of 1998 removed a provisional "moratorium"
on converting rental buildings to other uses including condominiums, leading
to the loss of rental units; the Act also introduced "vacancy de-control,"
giving landlords the ability to raise rents with no limitation upon vacancy.

Rising housing prices reduced the affordability of homeownership
during the late 1990s, prompting fewer moves and putting additional pressure
on rental vacancies.

Low rental housing production resulted from discontinued assisted
housing programs; only 1,000 annual rental units were started in the late
1990s in all of Ontario - a decrease from an annual average of 3,300 rental
housing starts during the first half of the 1990s.

"The tightening rental market means fewer choices for tenants and
difficult times for those in need of affordable housing," said Ward.
"We expect to see the rental housing shortage only getting worse
without government-funded initiatives for new housing developments."